In 1992 I had the absolute pleasure of working with numerous nonprofits and their fundraising throughout Europe. During that year, I was handed a copy of a revolutionary new book on fundraising tec…

Source: trust.guidestar.org

I read Jim Collins’ book, Good to Great, several years ago, but I still recall his observations about “carefully selected technology”.  I am a data nut – I love to see numbers converge into patterns and use that understanding to guide new, innovative behavior.  But data can only identify the starting point.  As this guidestar.org Blog post states – fundraising and philanthropy is more art than science.  We make emotional decisions and then look for logical, reasoned facts to justify those choices.  

But by using technology wisely, to engage and inspire, we stay human.  Our prospective clients and donors know we care about them because we give them tools to improve their lives.  Especially when it comes to social media and the ability to “reach” large target populations, we have to be careful to add to our partners’ lives, not simply treat them as a piggy bank.

The Department of Labor is pressing forward with a new conflict of interest rule for financial advisors.

Source: www.forbes.com

This is another in the series of blog posts about the important connection between a solid financial plan and purposeful charitable giving and philanthropic activity.

A comprehensive financial plan that considers all the areas of your life is critical to overall well-being.  It reduces stress and allows you to fulfill your most important goals.  But it can be difficult for the average person to wade through the confusion in marketing that’s out there.  Here are 2 key actions that you can take in order to keep control of your own personal success, security and significance:

1. Educate yourself on financial planning – including estate plans and charitable giving plans
2. Build a team of competent professionals around you – by including experts in comprehensive planning, law, taxes and investments, you can avoid the “snake oil” salesmen.

Once you know what you have, why and how you want it to grow and a clear road map for execution, you act with confidence and intent.  This will affect all areas of your life where you want to improve the lives of others – including your family, your neighbors and even those whom you will never meet.

There is no denying the global phenomena of growing income disparity and this is true for India as well. Some of the recent economic statistics have been eye openers.

Source: wadhwani-foundation.org

Personal money matters can be a source of stress or strength in your life – which is it for you? For people with a  solid, comprehensive financial plan, money matters empower them, excite them to new possibilities and move them to more meaningful action.  If money is a source of stress for you,  the process of designing and implementing a financial plan will give you confidence in your own personal abundance and will unleash significant, purposeful action for your family and your community.

This blog is aimed at philanthropy – so why does it seem that I’ve diverged into a totally different topic?  It’s simple – if you don’t know what you have, what you want to do with it and why, then you cannot hope to make a difference in the world.  As Larry Waller, founder of Waller Financial Planning Group, says, “While we can’t change the past, we do have the opportunity to shape our preferred future.”

The planning process is a cycle of information, decision and action:

A comprehensive plan encompasses the following 7 areas of your life where you generate and spend resources:

But the entire process requires that you begin with some really basic life planning.  What do you want for yourself? Your family? Your community?  Why do you want to your portfolio to grow?  What values do you want your lifestyle to reflect?  What do you want to protect?  Whose lives do you want to make a difference in and how?

That may not seem like the kind of questions that a cold, logical finance person should be asking. These questions are way too personal. Right?  Wrong.  Unless you can determine the answer to those questions, you won’t be able to decide where you want to work, how to make thoughtful and responsible spending decisions or protect the dreams and plans you have for others after you’re gone.

But making thoughtful and responsible choices depends upon how well informed you are.  A recent report by the Consumer Financial Protection Bureau (CFPB) found that most people are getting their financial planning information from their social network.  This cuts across all education levels and incomes.  This is alarming:  People are getting information from non-experts and fragmented sources.

I recently joined The Financial Awareness Foundation (TFAF) as an advisor.  The mission of this nonprofit is to give the public access to reliable financial literacy education.  I know that people who can manage their finances with confidence can transform their lives, have positive influence with their loved ones and enhance the lives of many others.

Would you like that?

If you are ready to “shape your preferred future”, I invite you to join me in a web call next week.  In this conversation, we will introduce a process for life-long growth and sustainability in your “personal economy” and a pathway to become an amazing philanthropist.  Click HERE to register.

Contact me if you have any other comments or questions:

Survey looks at what’s stressing us out and who’s most affected by the psychological strain

Source: www.cbsnews.com

Money – it’s not lack of money that causes stress.  It’s the perception of scarcity of money.  There is a simple solution to this scarcity mentality, however:  Financial planning.

Financial planning is more than putting together a budget.  It’s comprehensive, involving decisions about your lifestyle and your legacy.  It’s about examining not just financial goals but your life goals and the impact you want to make on the world.

It’s also about good estate planning – – over 50% of Americans do not have a current estate plan.  Why is this important? Because all the dreams and plans you have made may not be realized if you are disabled or die.  The hopes you have for your family and your community would come to a sudden halt and cause a lot of instability and stress for your family .. . .

And thus we circle back to STRESS. . . Join me in March to begin a journey of financial awareness that will connect you with meaningful purpose in your life.  I will be holding a series of web calls to explore how you can get your financial plan started and reduce the stress in your life.

Raised Catholic in the Philippines, Angelica Berrie now runs a charity that gives 40% of its money to Jewish causes, including unconventional ones, such as helping gay and transgender Israelis.

Source: www.forbes.com

Succession planning for philanthropy is not just for the wealthy.  This is about defining your values during your lifetime through daily actions – – – it’s not just words or writing checks.  But it is important to use words to clarify who, how and when the baton will be passed on.  So work with your advisors and your loved ones to design a great estate plan.

What are you passionate about?  What do you actively support?

If you don’t want the good work to end when you take the final bow, then write out a plan . . . talk with others, mentor younger people who share the passion, have an updated estate plan.  Don’t let a “gap” exist after you’ve gone!  

Closing the door on backdoor Roths for the rich is one of 10 loophole closers in the Administration’s FY2016 budget.

Source: www.forbes.com

More hits to middle-market philanthropists:  nestled at the end of the article is a discussion and a video on inherited IRAs and retirement plans.  The President proposes doing away with stretch IRA provisions, which will have an impact on millions of families over the years.  Sound estate planning that includes philanthropy could go a long way to protecting family assets.  Let me know if you would like to discuss!

The young, the middle-aged and the old have differing views of where dollars and goods should go.

Source: www.wsj.com

Notable is the lack of information on giving to religious organizations.  It has shown up in other charitable / philanthropic reports but is missing here.

I also wonder if the younger generation’s attitudes and interests will change over time.  In particular, will the sector focus of their philanthropic involvement and funding shift over time?  Again, are people more religious as they age and thus more involved in supporting a faith community?  Are older people more aware of medical  / health issues and thus more inclined to fund research? 

What do you think . . . .?

What’s worth doing is worth doing well — especially when it comes to tying social causes to your mission as an entrepreneur.

Source: www.forbes.com

Pay attention nonprofits! – – people want to have more access, influence and impact.  They are more valuable to you than just a piggy bank.  While you obviously can’t let donors just “take over” and act on their own, you can find ways to channel their energy, experience and skills strategically.  They are looking for fulfillment – how can you give it to them?